Gala Games, a blockchain gaming platform, has encountered a significant security breach resulting in the loss of over 4 billion GALA tokens. The breach, described as a “multi-million dollar security incident,” prompted Gala Games to freeze the impacted wallet containing the tokens. CEO Eric Schiermeyer assured users that the breach has been contained, and the Gala Games team is collaborating with law enforcement to investigate the matter further.
According to Schiermeyer, an unknown individual minted 5 billion GALA tokens worth $200 million and managed to sell around 600 million GALA tokens. However, the Gala Games team swiftly secured and removed unauthorized access to the GALA contract within 45 minutes of detecting the breach. Schiermeyer acknowledged internal control issues and emphasized steps being taken to prevent such incidents in the future, including community involvement in decision-making processes regarding daily token distribution.
Following the security breach, the value of the GALA token experienced a sharp decline, dropping to $0.037 before partially recovering to $0.042. Gala Games, founded in 2018, prioritizes player control in blockchain-based gaming and has raised $5 million in funding from investors such as Block Wolves, Broslyn Capital, and Ignite Group. The breach underscores the challenges of ensuring security in blockchain platforms and the importance of swift response measures to mitigate potential losses and reassure users.
